Older Borrower FAQs
If you have a case in mind for our Older Borrower range, but want to find out more, we’ve answered some frequently asked questions below. You can find out more about our range of products on our Older Borrower product page. You can also find information about our criteria on our Older Borrower criteria page.
Last updated 30 May 2022.
What is an Older Borrower mortgage?
Our Older Borrower mortgages work just like a conventional mortgage; however, they’re designed to support your later life clients aged 55 to 85 during their retirement.
With the opportunity for your client to use downsizing as a repayment vehicle, an Older Borrower mortgage could be right for those looking to purchase a new home, remortgage, or release funds from their property for a number of reasons, such as helping children onto the property ladder or funding home improvements.
Please note, if you are looking to borrow against your home for a variety of reasons (home improvements for example), depending on the amount of the loan advance, documented evidence may be required to support the loan purpose.
Are your Older Borrower mortgages available on interest only?
Yes, our Older Borrower mortgages are available for purchase, remortgage and unencumbered properties on an interest only or repayment basis, including remortgages from other lenders, either like-for-like or with additional borrowing.
If your client is looking for an alternative to equity release, please visit our Retirement Interest Only product page here.
What sources of income do you accept for Older Borrower mortgage applications?
We accept state, private and some foreign currency pensions. Employed and self-employed income can also be considered to support pension income, up to age 75, and we can also accept income from property and investments, providing they’re evidenced by SA302s or SA100s.
5% of SIPPs or investment portfolios that aren’t currently being drawn on are also accepted, we’ll just require a portfolio valuation no more than 30 days old at application.
Please note, where rental income is needed to support the mortgage, you must submit an Agreement in Principle. An element of property income can be used but the amount considered is linked to income and the debt outstanding on the investment properties.
What repayment vehicles can you accept for interest only?
We accept sale of another property, endowment and downsizing (subject to a minimum equity requirement). We’ll also accept investments, providing they’re not being used as part of the income for the application.
What’s the difference between an Older Borrower and Retirement Interest Only mortgage?
If your client is aged 55 to 85 and they’re looking to repay the value of their loan with regular monthly payments, our Older Borrower mortgage may be the best approach, which will allow your client to use downsizing as a repayment vehicle.
If your client wishes to avoid downsizing and remain in their home, our Retirement Interest Only mortgage may be more suitable. Available on an interest only basis, your client will not pay back the loan itself until a life event occurs, for example, going into long-term care or passing away.
- How can my client apply for a Marsden Older Borrower mortgage?
What is the maximum loan size available for an Older Borrower mortgage?
We’ll lend up to 60% LTV of the market price (or up to £750,000) to those looking to purchase or remortgage their property on an interest only or repayment basis. We require a minimum loan size of £30,000.
For further product details, please visit our Older Borrower product page.
What is the minimum deposit my client will need when applying for an Older Borrower mortgage?
A minimum 40% of the market value must be available as a deposit. The deposit can be the applicants’ own or gifted from an immediate family member (spouse, parent, grandparent, sibling, child or grandchild). Evidence of the source of deposit is required.
Is there a minimum income my client must earn to apply for an Older Borrower mortgage?
We require a minimum income requirement of £17,500 per Older Borrower mortgage application.
What is the minimum property value?
The minimum property value is £150,000 or product dependent.
Can my client remortgage their existing property and raise additional borrowing?
Yes, remortgaging and additional borrowing is available. A list of acceptable reasons for additional borrowing can be found on our Older Borrower criteria page.
What age can my client take out an Older Borrower mortgage?
The minimum age for an Older Borrower mortgage is 55. Details regarding our maximum mortgage term guidelines can be found on our Older Borrower criteria page.
What documentation does my client need to provide?
You can download a copy of our documentation checklist from our ‘Downloads’ page which lists all the requirements for Older Borrower mortgage applications.
Is there an affordability calculator for Older Borrower mortgages?
Yes, if you’d like to check your client’s affordability for an Older Borrower mortgage, please use our Residential calculator which can be downloaded on our ‘Affordability calculators’ page.
Can I submit intermediary mortgage applications online?
Yes, you can submit an application using Intermediary Online.
You’ll need to register to use the platform, but you’ll be able to create and edit applications, upload documentation and receive notifications at each stage of the process.
Can I download intermediary application forms?
Yes, you can download our mortgage application forms on our ‘Downloads‘ page; however, if possible we would prefer you to submit your application online.
We can accept applications and supporting documents via email in the first instance at firstname.lastname@example.org but the original application form will need to be posted to our Principal Office address; Marsden Building Society, Principal Office, 6-20 Russell Street, Nelson, Lancashire BB9 7NJ.
Do I need to register to submit an intermediary mortgage application?
No, there is no need to pre-register if you’re applying via paper application, we will use the information provided when you submit your first application with us.
If you want to submit your application online, you will need to register for our Intermediary Online service.